Student Loan Rates Doubled. Have a Happy 4th!

The June 30 deadline for action by Congress came and went. In a shocker, Republicans obstructed efforts to keep student loan rates from doubling. Now is the time to call your senators and representatives and raise a ruckus. Republicans insist that the country make a profit off of the students, but how does it help a country and an economy to make it so expensive to get a higher education?

Interest rates on student loans will double to 6.8 percent on July 1 unless Congress acts. But it seems increasingly likely that the Congress will take off for the Fourth of July recess without addressing the problem. The major sticking point: Republicans in the House and Senate insist on gouging the kids to help reduce the deficit.

Republicans want student loan rates to double to “market rates” plus a bit more, so the government can make a profit from the loans. They say that if government helps students even a little bit on interest rates—never mind paying for college—it is “government spending” and therefore must not happen. Of course, in a democracy “government spending” is by definition things We the People decide to do to make our lives better. But that gets in the way of the 1 percent having even more fabulous wealth, so.…

This debate will start again next week. Members of Congress should get a fierce response as they arrive home for the July 4 break.

In less than one month, debt-saddled students will be socked with higher loan rates unless Congress acts. Sen. Elizabeth Warren has proposed a commonsense solution: Give students the same loan rates the Federal Reserve gives the banks.

Join Daily Kos and Campaign for America’s Future and send a message to Congress.

Research assistance for this post was provided by Jane Yurechko.

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